Business Activity Tax Simplification Act A bipartisan group of lawmakers are pressing for the passage of the Business Activity Tax Simplification Act (“BATSA”). The federal legislation would prohibit states and localities from levying certain taxes, including franchise taxes, on businesses that do not keep employees or property in that jurisdiction for more than two weeks during the year. In a recent op-ed in support of the legislation (available here), Reps. Goodlatte and Scott noted that a growing number of state and local governments have adopted standards to tax out-of-state businesses that may conflict with the Supreme Court’s interpretations of the… Read more

Franchisor’s “Lewd” Advertising Not a Breach of Franchise Agreement A federal district court in Missouri ruled that Hardee’s Food Systems, Inc., a fast food franchisor, did not breach the implied covenant of good faith and fair dealing in its agreement with a franchisee. The franchisee had alleged that two of the franchisor’s television ads were “lewd” and had resulted in lost profits and other damages to the franchisee. As evidence, the franchisee cited numerous complaints from its “predominantly agricultural and union-oriented community, about the unacceptable nature of these ads.” The relevant provision in the franchisee’s agreement stated, in part, that… Read more

The IRS has announced the 2019 cost-of-living adjustments for various retirement plan dollar limits.  The 2019 limits are as follows: Limit 2017 2018 2019 Section 402(g) limit for 401(k) pre-tax contributions $18,000 $18,500 $19,000 Section 414(v) catch-up contribution limit $6,000 $6,000 $6,000 Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes $270,000 $275,000 $280,000 Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit 6.67% 6.73% 6.79% Section 415 limit on annual additions to a defined contribution plan $54,000 $55,000 $56,000 Section 415 limit on annual benefits under a defined benefit plan $215,000… Read more

In May 2015, in response to the immigration service’s Administrative Appeals Office decision in Matter of Simeio Solutions, LLC, USCIS issued draft guidance addressing the need for employers to file amended H-1B petitions when there was a change in the foreign national employee’s worksite.  Essentially, the immigration service considers there to be a “material change,” thus triggering the need for the filing of an amended petition, when an H-1B employee is going to their place of employment to a new worksite that was not listed in the employer’s initial petition and accompanying Labor Condition Application (LCA). In this draft guidance, USCIS indicated… Read more

The Department of State’s recently issued Visa Bulletin for February 2015 shows welcome movement in several employment-based categories and disappointing movement in a couple of others.  EB-2 India moves 6 ½ months to 01SEP05, while EB-2 China only moves 1 ½ months to 15MAR10.  EB-3 Worldwide moves a healthy six months to 01JAN14, as does EB-3 China (01SEP11).  However, EB-3 India only moves 1 week to 22DEC03. The Department of State also gives predictions for movements in the coming months.  EB-2 China is expected to move at a pace of 304 weeks per month, and EB-2 India will move at… Read more

The H-1B filing period for FY2016 is quickly approaching.  On April 1, 2015, the immigration service (USCIS) will begin accepting petitions for a start date of no earlier than October 1, 2015.  It is never a good idea to wait until late into March to start getting petitions ready to file.  The Department of Labor’s (DOL) processing time alone for the Labor Condition Application (LCA), while required to be within 7 days, typically lengthens as the volume increases in February and March.  And USCIS will reject any H-1B petition that is submitted without a certified LCA.  Additionally, if the petitioner… Read more

Smith, Gambrell & Russell, LLP’s Global Immigration & Mobility practice assists employers nationally and internationally with immigration matters. The following newsletters contain recent business immigration developments. If you have questions about any of the articles in a newsletter or wish to discuss these matters in more detail, please contact a member of SGR’s Business Immigration/Naturalization practice.

Is a two year contractual limitation period in a fire insurance policy reasonable and enforceable where the insured property cannot reasonably be replaced in two years?  Answer: No. Executive Plaza, LLC v. Peerless Insurance Company,  2014 NY Slip Op 00898  (decided February 13, 2014),  involve[d] a fire insurance policy that contain[ed] a clause limiting the time in which the insured may bring suit under the policy. The limitation period [was] two years, running from the date of the fire. The policy also [said] that the insured may recover the cost of replacing destroyed property — but only after the property… Read more

Does CPLR § 5222-a create a private cause of action that may be enforced in a plenary action? Answer: No. In Cruz v. TD Bank, N.A., 2013 NY Slip Op 07762, the Court of Appeals, answering questions certified by the Second Circuit, was called upon to determine “whether plaintiffs may bring plenary actions in federal court against their banks seeking money damages allegedly arising from the banks’ failures to send the forms [required by CPLR § 5222-a], among other deficiencies.